Owner Finance Agreement Template for Belgium

The Owner Finance Agreement is utilized in situations where traditional bank financing is either not preferred or not available, allowing property sellers to act as direct lenders to buyers in Belgium. This arrangement must comply with Belgian civil law, consumer protection regulations, and property transfer requirements. The document encompasses both the property sale and financing aspects, including purchase price, payment terms, interest rates, security arrangements, and conditions for title transfer. It's particularly relevant in scenarios involving private property sales, family transactions, or cases where buyers may not qualify for traditional mortgage lending. The agreement must be properly registered and notarized according to Belgian law, with specific attention to consumer credit regulations and mortgage registration requirements. The document typically includes comprehensive provisions for property maintenance, insurance requirements, default scenarios, and eventual property title transfer.

1. Parties: Identification of the seller/lender and buyer/borrower with full legal names, addresses, and identification numbers as required by Belgian law

2. Background: Context of the transaction, including property details and parties' intention to enter into an owner-financing arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including financial, property-related, and legal terminology

4. Property Description: Detailed legal description of the property, including cadastral references and any existing encumbrances

5. Purchase Price and Financing Terms: Total purchase price, down payment, financed amount, interest rate, and payment schedule

6. Payment Terms: Detailed payment obligations, including monthly payments, due dates, and payment methods

7. Security Arrangements: Details of mortgage registration and other security interests to be registered

8. Insurance and Property Maintenance: Requirements for property insurance and maintenance obligations during the financing period

9. Default and Remedies: Consequences of default and legal remedies available to both parties

10. Transfer of Title: Conditions and process for the final transfer of property title upon completion of payments

11. Representations and Warranties: Statements of fact and promises made by both parties regarding their capacity and the property

12. Governing Law and Jurisdiction: Confirmation of Belgian law application and jurisdiction for disputes